TAX DEDUCTIBLE ACCESS TO SHARES THAT PAY MORE DIVIDENDS?

In the previous “Did You Know” we gave you 10 reasons why a RA makes good sense tax wise. Come next year you can add a new reason to the list.  This article explains the present and the future position.

Also remember by having exposure to shares in a RA wrapper you do not pay any capital gains tax when shares are disposed of by the fund unlike if you had owned them in your personal capacity. Again a positive for fund returns.

Having tax deductible exposure to shares that pay more dividends is a new angle to consider going forward which could make RAs, tax wise, an even better prospect. Read on